Mr. Love,
I suggest you create an alpha channel for the water texture.
i.e. RGB 128,128,128 (grey) for a 50% transparency
And Yes depending on which programe you use then it may matter how you save out the file. I dont know the program you are using. Some have only one choice for export to .dds - others may have support for multiple .dds file output format options.
As long as you get the alpha channel set up then a couple of tests should soon find the best export options if you have any choice if you find it dont work correctly the first attempt.
After you have saved the file with alpha channel just place it in the correct folder location as is and reference it in the .fpe script file and test run the level. If you dont see the transparency - try right click entity and go into 3D inspect mode and in the transparency setting for the entity enter the value 2.
Test run level and if the transparency still dont show exit and open the entity .fpe and insert appropriately in the transparency field the value of 2 or if none exists then add in the
;visualinfo section :
transparency =2
Test level again.
One of those methods should do it.
If not then the alpha channel is probably not saved out correctly as FPSC wants to read the info.
You could then try saving out your image that you made with alpha channel as a .PNG which should imbed the alpha channel and info into the texture file permanently, change the tex ref in the .fpe and see if that version will work.
PNG work sometimes on some entities not so well on others.
I use .dds and have rarely had any transparency probs though on the one or two occasions I have then .PGN have worked successfully.
Overall I have never failed one way or another to get a successful transparency on any entity I have applied them to.
Transparency setting of 1,2 and 4 I have used for different circumstances on different entity types.
A setting of 2 works for almost all object types a setting of 4 on some objects seems to make them completely invisible.
Hope that helps a little.
"I am and forever will be your friend"